Download - 6.12 Dainette Mintz

Philadelphia Housing Trust Fund Philadelphia Housing Trust Fund

Presented at National Alliance to End Homelessness 2011 National Conference on Ending Homelessness

July 15, 2011

Philadelphia Housing Trust FundPhiladelphia Housing Trust Fund


2

Build a CoalitionBuild a Coalition

In 2003, community leaders and stakeholders saw a critical juncture in city’s affordable housing crisis and ability to foster sustainable neighborhood revitalization.Coalition led by Philadelphia Association of Community Development Corporations (PACDC), with more than 110 organizations

Support from the City administration, City Council and State legislators


3

Make the Case with the FactsMake the Case with the Facts

Almost 130,000 households in Philadelphia (1 out of 5) have annual incomes below $20,000 and pay more than they can afford on housing

Nearly 60,000 more affordable units of rental housing are needed in Philadelphia to meet the housing crisis

Federal investment in affordable housing is decreasingExisting resources inadequate to meet the need Leveraging opportunities going unutilized

Funding support from: William Penn FoundationFannie Mae FoundationSamuel S. Fels FundLocal Initiatives Support Corp.

“A Philadelphia Housing Trust Fund: Ensuring a Future of Affordable Housing and Neighborhood Revitalization” White Paper Release, October 2003


4

Make the Case with the FactsMake the Case with the Facts

As Philadelphia’s federal entitlement funding has contracted, amount of money the City has been able to invest in housing production has fallen by more than 60%.


5

Make a ProposalMake a Proposal

Coalition made specific recommendations about:What to fund: housing production and preservationAdministering agencyAllocation process and oversightPotential revenue sources

“A Philadelphia Housing Trust Fund: Ensuring a Future of Affordable Housing and Neighborhood Revitalization” White Paper Release, October 2003


6

Understand the Legislative NuancesUnderstand the Legislative Nuances

PA’s 1992 state law (“Act 137”) allows counties to set up own Housing Trust Funds via surcharge on deed and mortgage recording fee. 51 of 67 counties have Funds

Counties defined as “of the first class” (i.e. Philadelphia) were not included in the Act 137 enabling legislation

Advocates worked for State authorizing legislation in 2005 for “first class” cities and counties

Allowed for increase of fees charged by recorder of deeds, with at least 85% to be set aside to fund affordable housing efforts (15% administration)


7

Local Ordinance - Bill No. 050059Authorized fee collection and specified amounts,

e.g. $57 for recording mortgages

Specified income guidelines for households that would benefit:

50% of program funds for households at or below 30% of AMI

50% of program funds for households between 30% and 115% of AMI

• Established guidelines for Oversight Board

Understand the Legislative NuancesUnderstand the Legislative Nuances


8

Housing Trust Fund CreatedHousing Trust Fund CreatedEstablished September, 2005Resources can be used to:

Increase production of affordable housing for sale or rental

Increase accessibility of new and existing affordable housing to physically disabled occupants and increase supply of visitable housing

Preserve affordable housing, including but not limited to grants for basic systems repair or improvement of owner-occupied homes, for adaptive modification or for targeted improvement of facades

Prevent or reduce homelessness, including but not limited to emergency assistance to prevent and/or end homelessness or near homelessness by maintaining households in their own residences when eviction is imminent through rent and mortgage arrearage


9

UsesUses

50% of program funds for new housing production

50% of program funds for housing preservation, home repair and homelessness prevention


10

Income RequirementsIncome Requirements

50% of program funds targeted to very low-income families and individuals earning at or below 30% of AMI

50% of program funds targeted to low- to moderate-income households earning between 30% and 115% of AMI


11

AdministrationAdministration

Proposed yearly expenditures detailed in City’s annual Consolidated Plan

Plan submitted to City Council for approval

Funds awarded through open, competitive process

Up to 15 percent City administrative costs as allowed by state enabling legislation


12

HTF Oversight Board HTF Oversight Board

Chair of Oversight Board is OHCD Director

3 City Council representatives

Redevelopment Authority, Housing Authority, andDeputy Mayor for Economic Development

4 community organization members – represent CDCs, disability community

Administered by City’s Office of Housing & Community Development (OHCD)


13

Monthly Deed and Mortgage Recording Fee Revenue FY06-FY11 Monthly Deed and Mortgage Recording Fee Revenue FY06-FY11 Ju

ly 0

5

Sept

embe

r

Nov

embe

r

Janu

ary

06

Mar

ch

May

July

06

Sept

embe

r

Nov

embe

r

Janu

ary

07

Mar

ch

May

July

07

Sept

embe

r

Nov

embe

r

Janu

ary

08

Mar

ch

May

July

08

Sept

embe

r

Nov

embe

r

Janu

ary

09

Mar

ch

May

July

09

Sept

embe

r

Nov

embe

r

Janu

ary

10

Mar

ch

May

July

10

Sept

embe

r

Nov

embe

r

Janu

ary

11

$1,400,000

$1,200,000

$1,000,000

$800,000

$600,000

$400,000

$200,000

$0


14

Comparison: FY 2006 and FY 2011Comparison: FY 2006 and FY 2011

Philadelphia HTF Program/ActivityFY 2006 Budget

FY 2011 Budget

Neighborhood-Based Homeownership Production 1,000,000 0

Homeownership New Construction Program 1,500,000 0

Neighborhood-Based Rental Production 3,500,000 3,187,000

Basic Systems Repair Program 1,247,000 700,000

Targeted Housing Preservation Program 1,465,000 200,000

Homeownership Rehabilitation Program 354,000 0

Adaptive Modifications Program 220,000 1,504,000

Rental Assistance 661,000 0

Homelessness Prevention Programs 489,000 784,000

City Administration 1,725,000 1,125,000

Total 12,161,000 7,500,000


15

FY 2011 Allocation Summary• Mortgage Assistance

Annual Allocation $595,000

• Rental Assistance (Pathways to Housing) Annual Allocation $189,000

Rental Assistance Program Balance $252,000

Total $1,036,000

Leverages in other funding $6.9 million

Contributions to Address HomelessnessContributions to Address Homelessness


16

Homelessness Prevention Allocation for Office of Supportive Housing’s Mortgage Assistance Program

Percent of Housing Trust Fund annual collections (based on amount collected)

Allocation - $595,000

Used HTF funds for mortgage assistance since ineligible under HPRP



17

Results:

234 households averted foreclosure

$363,905 in direct financial assistance provided

Cost of providing emergency shelter would have been more than $1 million (based on average length of stay of80 days x $35 per person per day*)

* Office of Supportive Housing shelter per diem

Homelessness Prevention Mortgage Assistance ProgramHomelessness Prevention Mortgage Assistance Program


18

Rental Assistance – Housing First Program through Pathways to Housing provides permanent supportive housing for 125 chronically homeless individuals

Must have diagnosed severe mental illness (Axis 1)•More than ½ have schizophrenia

•¼ have depression

•Just under ¼ have psychotic disorder



19

• 88% of those housed remain housed

• Comparing 12 months prior to admission and 12 months after housing

Shelter episodes decreased by 88%

Acute mental health hospitalization, either voluntary or not, decreased by 70%

Philadelphia Prison System episodes decreased by 50%

Rental Assistance - PathwaysRental Assistance - Pathways


20

Leveraged Funding:

• 2008 & 2009 McKinney bonus project for housing subsidies awarded

• 2010 McKinney request for 50 unit expansion

• Services fully funded by City Department of Behavioral Health (Medicaid billable)

• Annual cost approx. $3.2 million(approx. $1 million housing, balance is services)

• HTF allocation supports housing costs not eligible/covered by HUD

Rental Assistance - PathwaysRental Assistance - Pathways


21

Rental Assistance Family Demonstration ProgramFY 2007 Special Allocation ($1 million)

• Three years of sliding scale rental assistance for 40 families from transitional housing with employment-focused case management



22

Outcomes:

• 40 families participating

6 negative discharges

• 85% (34) are stably housed

One bought a home

76% are employed

Rental Assistance Family Demonstration ProgramRental Assistance Family Demonstration Program


23

Rental Assistance Family Demonstration ProgramRental Assistance Family Demonstration Program

OutcomesAverage salaries $10.62/hour

> 50% increased incomes since start of program

Average rent amount $764

Average rent paid by participants $449

June 09 analysis showed families would pay on average 71% of gross income for rent and utilities without a subsidy


First 5 Years 2006-2011First 5 Years 2006-2011

24

More than $45 million committed to expand and improve housing opportunities for more than 8,000 Philadelphians

Leveraged more than $234 million in additional funding, creating jobs and strengthening neighborhoods


25

First 5 Years 2006-2011First 5 Years 2006-2011

Since 2006, supported the housing needs of more than 4,000 households

2,886 households earned 30% or less of AMI

1,136 households earned more than 30% of AMI


26

Philadelphia’s Steps to a Housing Trust FundPhiladelphia’s Steps to a Housing Trust Fund

Create a broad-based coalition

Build the case for the need and benefits

Make a proposal

Understand the legislative nuances

Get governmental support

Stay involved


27

Lessons LearnedLessons Learned

Establishing a Trust Fund takes time

Homeless advocates need to stay at the table

Advocate for a set percentage of fund to be dedicated to homeless activities

Optimally should be flexible and include housing production, prevention and rental assistance


Additional InformationAdditional Information

White Paper Five Year Report State Enabling Legislation City Council Ordinance Mayoral Executive Order

http://philadelphiahousingtrustfund.org

Dainette M. Mintz, Director, Office of Supportive Housing, City of [email protected] 215-686-7106

Download - 6.12 Dainette Mintz

Top Related